DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing All Things Investing - Getting Started
Jun 25, 2025
Discover the fundamentals of investing, including the differences between 401ks and Roth IRAs. Learn about stocks, bonds, and the myths surrounding mutual funds. Explore the essential components of investment accounts and the importance of self-awareness in managing risks. Dive into allocation and diversification strategies tailored to your age and timeline. Finally, understand how to mitigate risks with a diversified portfolio and the critical need for thorough due diligence if you're eyeing entrepreneurship.
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Know Your Investment Buckets
- Understand that your 401k or Roth IRA is just a bucket holding investments.
- Focus on selecting the investments inside, like stocks or bonds, rather than investing in the bucket itself.
Index Funds' Similar Performance
- Index funds like the S&P 500 and Total Stock Market Index own hundreds to thousands of companies.
- Their performance is often very similar due to the dominant influence of the largest companies.
Use Target Date Funds
- Use target date funds for a hands-off, diversified investment approach.
- These funds automatically adjust stock and bond ratios as you near retirement.